What is the Learningrx franchisee's sole remedy if the franchisor obtains injunctive relief?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Franchisee Affiliate agree that Franchisee's and/or Franchisee Affiliate's sole remedy in the event of the entry of such injunctive relief shall be dissolution of such injunctive relief, if warranted, upon hearing duly had; provided, however, that all claims for damages by reason of the wrongful issuance of any such injunction are hereby expressly waived by Franchisee and by Franchisee Affiliate.
Franchisee agrees that injunctive relief may be appropriate in the following situations including, but not limited to, using products outside the bounds of the Franchise Agreement, violating in-term and post-term non-competes, and trademark infringement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, if Learningrx obtains injunctive relief against a franchisee, the franchisee's sole remedy is to seek the dissolution of the injunction. This means the franchisee can request the court to terminate or undo the injunction if they believe it is unwarranted. However, the franchisee gives up the right to claim damages for the injunction's wrongful issuance.
This clause has significant implications for a prospective Learningrx franchisee. It limits their legal recourse if Learningrx obtains an injunction against them, even if that injunction is later determined to be unjustified. While the franchisee can attempt to dissolve the injunction, they cannot recover any financial losses they may incur as a result of the injunction, such as lost profits or legal fees.
Such a provision is not uncommon in franchise agreements, as franchisors often seek to protect their brand and system standards. However, franchisees should carefully consider the potential risks and consult with an attorney to understand the full implications of waiving their right to damages in the event of a wrongfully issued injunction. This waiver could leave a franchisee vulnerable to significant financial harm with limited ability to seek compensation.
Learningrx also states that injunctive relief may be appropriate in situations including using products outside the bounds of the Franchise Agreement, violating in-term and post-term non-competes, and trademark infringement.